Here’s what’s happening.
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HIRE Act
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President Obama recently signed an $18 billion jobs bill. What does that really mean for your company?
The Hiring Incentives to Restore Employment (HIRE) Act is designed to encourage companies to hire new employees by providing two tax breaks: (1) Savings on payroll taxes…Through the rest of the year, employers don't have to pay the employer 6.2% Social Security payroll tax for qualifying employees.
(2) A tax credit on new hires that remain employed for 1 year or more… Companies are entitled to a tax credit of up to $1,000 for each new qualifying employee that remains on your payroll for 52 consecutive weeks. The credit can be taken on the company's 2011 tax return.
To qualify for the tax breaks, new employees must be (or have been) hired between Feb. 3, 2010, and Jan. 1, 2011. Each new hire must certify, in writing, that he or she's been unemployed for 60 days.
Contact our office for questions or assistance.
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